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Spotify Mobile Web-Radio Service Will Challenge Pandora

Spotify Ltd., the music-streaming service, is adding a free radio feature in the U.S. that will compete with Pandora Media Inc. for listeners on mobile devices.

Spotify’s ad-supported radio function is available today through Apple Inc.’s AppStore for use on iPads and iPhones, London-based Spotify said in a statement. Paying users of Spotify’s streaming service on the devices will be able to listen to radio without the ads, from marketers including Chevrolet, Heineken and Taco Bell.